World’s Biggest Gold Producer-Barrick Gold Corp Warns Drop of Production

NEW YORK (Scrap Monster) : Barrick Gold Corp. – World’s number one producer of the precious yellow metal had warned that their in-the-ground gold reserve will shrink, resulting a significant decline of production in 2014. Barrick had warned the reserve cut of gold during the week which has startled miners and investors across the globe, generating anxiety regarding the asset write downs, especially in an already weakened sector.

The reserve cut of top gold miner has increased the uneasiness among shareholders and gold-lovers as decline of future source of gold production is foreseen to add to the present gold price and week gold market. This will be an added curse to the bullion price slide that fell 28 % in 2013. However, the reserve cut may benefit is one way as it will help in bringing back the sector to longer-term health.

Barrick has announced that they will be updating its reserve based on long time average gold price of $ 1,100 an ounce. They are taking measures to lower their costs and handle the fallout from 30 % drop in Gold price. They said that in order to acquire their objective, they will have to take tough decisions, even if it meant closing some of their mines. They have sold assets and also shuttered mines, which will affect this year gold production. By selling and retooling mines, they expect to reduce their gold production in 2014.